SCOTTSDALE — A state lawmaker who is running to be an Arizona utility regulator and is under investigation over his campaign signs is now also locked out of his public funding.
The Arizona Clean Elections Commission is investigating state Rep. Ralph Heap after a former Republican district chair filed a complaint questioning his expenditures on signs.
“If the number of signs observed in the West Valley is representative of activity elsewhere in the state, the total cost associated with the sign program could be substantial,” Lisa Everett wrote in her complaint.
In the June complaint, which ABC15 obtained through a public-records request, Everett said she was concerned whether the cost of the production, distribution and installation of the signs had been properly reported.
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The signs, which have been spotted statewide, say Heap’s campaign paid for them.
According to Heap’s campaign-finance reports, he has spent a mere $644 on signs for his statewide Corporation Commission race. That’s just over one-fifth of the $2,924 he spent on signs when he ran for his Legislative District 10 seat in the Arizona House.
Heap has qualified for public campaign funds. Corporation Commission candidates generally take the public-funding option to avoid the appearance of industry influence.
“Arizona has a state program that allows candidates who choose to voluntarily forego PAC donations and large individual donations to qualify for funding from a voter-created fund called the Clean Elections Fund,” Tom Collins, Clean Elections Commission’s executive director, told ABC15.
To qualify for the program, candidates must collect a minimum number of $5 qualifying contributions from registered voters.
Why Heap's public funding was withheld
The commission, which also oversees the “clean funding” program, told Heap’s attorney in a letter the day before the primary that Heap had qualified for the funding – but it was not releasing the money because Heap had not sworn his campaign reports were complete and accurate.
“Dr. Heap has not submitted such a statement therefore no funds may lawfully be released,” wrote Tom Collins, the commission’s executive director.
According to an email Collins sent Heap's attorney, Timothy La Sota, a few days later, Heap could be at risk of being disqualified from the Clean Elections funding program.
"There is substantial evidence that Dr. Heap’s campaign finance reports do not reflect expenditures for signs paid for by the campaign, nor identify the source of the funds for those signs," Collins wrote, going on to say Heap could have problems complying with the requirement he submit a sworn statement about the accuracy of his reports.
Heap's campaign has yet to respond to the campaign-finance allegations; La Sota on Monday sent the commission a letter saying he was still reviewing the matter.
“The commission ultimately has to adjudicate whether or not there's a violation,” Collins told ABC15.
Any penalties are driven by the facts of the case, he said. Like other administrative state agencies, cases before the commission are often resolved with a settlement.
“Each and every process outlined in the Clean Elections Act and Voter’s Right to Know Act do take time,” Collins said. “Every single one of these takes a tremendous amount of time.”
Stakes are high
Without Heap’s nearly $370,000 in public funding, his campaign is short on cash. In his most recent campaign filing, Heap reported having $9,555 on hand out of the $18,221 he had raised.
And because he’s a Clean Elections candidate, he can’t raise any private money – and he needs the commission’s approval to leave the program.
Campaign funds could be critical for the statewide Corp. Comm. race.
Heap defeated Commissioner Nick Myers in the GOP primary.
Two seats of the five seats on the Corporation Commission are up for election this year. All of the current commissioners are Republican, and two Democrats are running.
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